CleanSpark (CLSK) investor relations material

Market overview and industry transformation

• Hyperscalers are projected to spend over $1 trillion on AI in the coming year, driving demand for scalable power and infrastructure.

• Bitcoin miners have secured over $160 billion in AI colocation deals and have access to more than 14 GW of power capacity.

• The transition from Bitcoin mining to AI/HPC data centers is motivated by higher asset value per MW and recent shifts in Bitcoin economics.

• Labor shortages and rising costs, especially for electricians and specialized equipment, are significant bottlenecks for new data center builds.

• Companies are leveraging existing land and power assets to quickly meet hyperscaler and AI compute demand.

Business models and strategic approaches

• Two main monetization models are colocation and AI cloud services, with some firms pursuing both for diversification.

• Spinning off pure-play AI infrastructure businesses helps attract institutional investors and secure financing, avoiding crypto-related concerns.

• Acquisitions of specialized teams and companies are key to successfully retrofitting and operating AI data centers.

• Firms are cautious about locking up all power assets in long-term leases, maintaining flexibility for future opportunities.

• Partnerships and joint ventures with experienced EPCMs and developers help de-risk construction and ensure timely delivery.

Recent deals, pipeline, and financial structuring

• Multi-billion dollar leases and LOIs have been secured, with CleanSpark landing a $6.6 billion, 20-year triple net lease and Core Scientific signing a 500 MW deal with AMD.

• Companies are actively developing large-scale campuses, with Soluna building renewable-powered sites and WhiteFiber retrofitting existing facilities.

• Financing structures typically involve 80% debt and 20% equity, with project-level funding and guarantees from investment-grade tenants.

• Prepayments from customers and innovative lease backstops, such as LC arrangements, are used to reduce financing needs and risk.

• Labor, supply chain, and political headwinds are key risks, with community engagement and education used to mitigate opposition.